Netflix users to pay VAT in Argentina

Argentina’s Federal Administration of Public Revenues (AFIP) decided that digital platforms such as Netflix and Spotify will start in April to pay 21% VAT (value added tax). The decree has already been sent (to the Casa Rosada) and the resolution will be operative at the end of the month, said the now ex-AFIP head Alberto Abad, before submitting his resignation to the agency.
This new resolution comes after last year’s approval of the tax reform that, among other things, allows the AFIP to start collecting taxes for digital services of foreign companies. According to local media reports, credit cards will act as withholding agents and then turn it over to the AFIP. This way, 21% VAT will be added to prices.
The tax now includes services with access to download of movies, series, music, images, information and games – including games of chance. According to TN website, other platforms included are HBO GO, Fox or Amazon.